Bitcoin’s Recent Price Movements
The recent discussion around Bitcoin has been focused on its price hovering just below $69,000. Several months ago, there was a prediction that a significant low would be challenged around late April to early May. Reflecting on this, the “outcome that we talked about was to basically sort of sweep the low, wick to around 20” before rebounding.
Patterns and Predictions
Observing the patterns, a similar trend was noted earlier in the year. After sweeping a low, there tends to be a recoil upwards. An important consideration is “what comes after that two-week rally that is the more important thing.”
Labor Market Influence
The labor market data significantly influences Bitcoin’s price movements. “If the labor market’s still resilient and holding up well, Bitcoin last June swept the prior high and put in a new high.” Conversely, weaker data could lead to further consolidation downwards.
Bitcoin and Ethereum Dynamics
The observed market dynamics extend to the interaction between Bitcoin and Ethereum. “Ethereum dominance is doing a lot of heavy lifting,” suggesting a shifting focus within the cryptomarket.
Support Zones and Resistance Levels
Bitcoin’s dominance has bounced back to the bull market support band, around 54%. It is critical to watch if this prior resistance level now turns into support. “Bitcoin dominance is trying to turn that into support.”
Possible Outcomes
The possible outcomes of Bitcoin’s current setup are twofold:
- If labor market data is positive, Bitcoin could continue its rise and break through current high levels.
- If negative, further consolidation towards the support band is likely.